Astria Therapeutics(ATXS) - 2020 Q3 - Quarterly Report

Financial Performance - The company reported a net loss of $10.86 million for the three months ended September 30, 2020, compared to a net loss of $6.51 million for the same period in 2019, representing an increase of 66% in losses [78]. - Net loss for the nine months ended September 30, 2020, was $28.3 million, compared to a net loss of $19.7 million for the same period in 2019, reflecting an increase of $8.6 million [83]. - Net cash used in operating activities was $24.4 million for the nine months ended September 30, 2020, compared to $18.8 million for the same period in 2019 [92]. - The accumulated deficit as of September 30, 2020, was $251.9 million, indicating ongoing operating losses since inception [97]. - The company anticipates continued significant expenses and operating losses as it explores strategic options and evaluates future business strategies [100]. Research and Development - Research and development expenses increased by $3.1 million to $7.8 million for the three months ended September 30, 2020, primarily due to a $2.8 million increase in costs associated with the edasalonexent program [79]. - Total research and development expenses for the three months ended September 30, 2020, were $19.85 million, compared to $14.05 million for the same period in 2019 [68]. - Research and development expenses increased by $5.8 million to $19.9 million for the nine months ended September 30, 2020, representing a 41% increase from $14.1 million in the same period of 2019 [84]. - Research and development expenses for the nine months ended September 30, 2020, are expected to be significantly reduced following the decision to stop activities related to edasalonexent [71]. - The Phase 3 PolarisDMD trial for edasalonexent did not meet its primary endpoint, leading to the cessation of its development and related activities [59]. Administrative Expenses - General and administrative expenses rose by $1.1 million to $3.1 million for the three months ended September 30, 2020, driven by increased consulting and professional services costs [80]. - General and administrative expenses rose by $2.3 million to $8.6 million for the nine months ended September 30, 2020, marking a 37% increase from $6.3 million in the prior year [85]. Funding and Cash Position - As of September 30, 2020, the company had cash and cash equivalents of $52.9 million, which is expected to fund operations for at least the next twelve months [63]. - The company has raised an aggregate of $315.9 million since its inception in June 2008 through various financing methods, including private placements and public offerings [62]. - The company raised an aggregate of $315.9 million through various financing activities since inception, including $26.5 million from a public offering in January 2020 [87][88]. - Net cash provided by financing activities was $40.8 million during the nine months ended September 30, 2020, compared to $21.8 million in the same period of 2019 [95]. - The company anticipates needing substantial additional funding to support future operations and product development, as profitability is not expected without pursuing new product candidates [64]. Other Income - Other income, net decreased by $0.5 million to $0.1 million for the nine months ended September 30, 2020, primarily due to lower interest rates [86]. Strategic Options - The company plans to explore strategic options, including potential mergers or business combinations, with the assistance of Ladenburg Thalmann & Co., Inc. [61].